-------------------------------------------- ¦ REFERENCE TITLE: alternative fuels; reform ¦ -------------------------------------------- ¦ ¦ ¦ ¦ ¦ ¦ ¦ State of Arizona ¦ ¦ Senate ¦ ¦ Forty-fourth Legislature ¦ ¦ Seventh Special Session ¦ ¦ 2000 ¦ ¦ ¦ -------------------------------------------- ¦ SB 1002 ¦ -------------------------------------------- ¦ Introduced by ¦ ¦ Senators Freestone, Bundgaard ¦ --------------------------------------------
AN ACT
AMENDING SECTIONS 41-1516, 43-1086, 43-1086.01, 43-1174, 43-1174.01 AND 49-542, ARIZONA REVISED STATUTES; AMENDING TITLE 49, CHAPTER 3, ARTICLE 5, ARIZONA REVISED STATUTES, BY ADDING SECTION 49-542.05; RELATING TO ALTERNATIVE FUELS.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 41-1516, Arizona Revised Statutes, is amended to read:
41-1516. Arizona clean air fund; purposes; vehicle certification program; definition
A. The Arizona clean air fund is established consisting of the following:
1. Monies appropriated by the legislature.
2. Monies from the air quality fund pursuant to section 49-551, subsection C, paragraph 2.
3. Any monies that are appropriated to state agencies for alternative fuel vehicles or conversion of conventional vehicles to operate on alternative fuels and that have not been spent by the state agency at the end of each fiscal year.
4. Monies collected pursuant to section 49-543, subsection B, except that beginning on January 1, 2001 until the contract entered into pursuant to section 49-545 and in effect on April 28, 2000 expires, the department shall deposit, pursuant to sections 35-146 and 35-147, sixteen dollars eighty-one cents of the fee collected pursuant to section 49-543, subsection B in area A as defined in section 49-541 and two dollars fifty-one cents of the fee collected pursuant to section 43-543, subsection B in area B as defined in section 49-541 in the emissions inspection fund established by section 49-544 for the purpose of reducing the emissions inspection fees prescribed pursuant to section 49-543, subsection A.
5. Monies from the state lottery fund pursuant to section 5-522, subsection A, paragraph 4.
6. Monies deposited pursuant to sections 28-737, 28-876, 28-2416, 43-1086 and 43-1174.
7. Any other monies received through gifts, grants and donations.
B. The director shall administer the fund.
C. Except as provided in subsection O of this section, monies in the fund may be used for any of the following:
1. To promote public use of alternative fuels by providing individual grants for alternative fuel delivery systems that have had their equipment certified by the department of commerce energy office as follows:
(a) A grant of not more than one hundred thousand dollars for each variation of alternative fuel type dispensed through a newly constructed alternative fuel delivery system or an alternative fuel delivery system that is added to an existing facility if the alternative fuel delivery system is accessible to the general public.
(b) In addition to the grant prescribed in subdivision (a) of this paragraph, a grant for one hundred per cent of the cost of installing or retrofitting automatic debit or credit card access to an alternative fuel delivery system that is accessible to the general public.
(c) A grant of not more than fifty thousand dollars or the cost of the alternative fuel delivery system, whichever is less, for each variation of alternative fuel type dispensed through a newly constructed alternative fuel delivery system or an alternative fuel delivery system that is added to an existing facility if the alternative fuel delivery system is not accessible to the general public.
(d) A grant of not more than fifty thousand dollars for retrofitting a private alternative fuel delivery system to make it accessible to the general public.
(e) A grant of not more than fifty thousand dollars for retrofitting an alternative fuel delivery system owned by this state or a political subdivision of this state to make it accessible to other governmental entities.
THE DEPARTMENT OF COMMERCE SHALL NOT PROVIDE A GRANT PURSUANT TO THIS PARAGRAPH FOR MORE THAN ONE HUNDRED THOUSAND DOLLARS TO ANY ONE FUELING FACILITY OR FOR MORE THAN SIX FUELING FACILITIES IN ONE CALENDAR YEAR.
2. Not more than one-half of the monies deposited in the fund shall be used by the department to establish a program that would provide grants to individuals, small businesses or nonprofit corporations for the purchase and installation of an alternative fuel delivery system for use on the individual's, small business' or nonprofit corporation's property in this state. Grants awarded pursuant to this paragraph shall not be more than FIFTY PER CENT OF the cost of the alternative fuel delivery system. The cost of the alternative fuel delivery system does not include the cost of wall sockets or extension cords. The department of commerce shall promptly notify the department of revenue of individuals and small businesses that have received a grant pursuant to this paragraph and the amount of the grant. For the purposes of this paragraph, "small business" has the same meaning prescribed in section 41-1001.
3. Grants to school districts to pay a portion of the cost incurred for the alternative fuels program prescribed in section 15-349.
4. Grants to community college districts to pay a portion of the cost incurred for the alternative fuels program prescribed in section 41-803.
5. Grants to cities and towns to pay a portion of the cost incurred for the alternative fuels vehicle program and for the incremental cost of alternative fuel buses pursuant to section 9-500.04.
6. Grants to counties to pay a portion of the cost incurred for the alternative fuels program prescribed in section 49-474.01.
7. Grants to nonprofit corporations to pay a portion of the cost incurred by nonprofit corporations in acquiring alternative fuel vehicles.
8. Grants to provide service to fleets that have been converted for use of alternative fuel within the previous five years so that the vehicles in the fleets may function on alternative fuel.
9. To pay the costs of high occupancy vehicle lane sign markings required by section 28-2416 and the costs of providing the information prescribed in section 28-5801, subsection A, paragraph 2.
10. Administrative costs incurred by the department in administering the programs prescribed in this subsection.
11. To conduct public awareness programs for alternative fuels.
12. To provide for training for persons involved in alternative fuel activities with automobiles.
13. To allocate resources to reduce the cost of converting or acquiring alternative fuel vehicles and equipment as prescribed by sections 43-1086, 43-1086.01, 43-1086.02, 43-1174, 43-1174.01 and 43-1174.02.
14. To allocate resources to reduce the cost of an alternative fuel as prescribed by sections 43-1086, 43-1086.01, 43-1086.02, 43-1174, 43-1174.01 and 43-1174.02.
D. Except as provided in subsections E and O of this section, the department shall use fifty per cent of the monies deposited in the fund in fiscal years 2000-2001 through 2009-2010 to provide grants to persons for purchasing alternative fuel vehicles, converting conventionally fueled vehicles to operate on an alternative fuel or retrofitting alternative fuel vehicles, except that:
1. Beginning on July 1, 2002, if twelve months after deposit of the monies applications for grants pursuant to this subsection have not been submitted in a total amount equal to the prescribed percentage of the monies deposited, the department shall use the difference between the prescribed percentage of the monies deposited and the total amount of grant applications to provide grants to a regional planning agency in a county with a population of more than one million two hundred thousand persons for conversion of diesel fleets in the county to use alternative fuels or for acquisition of alternative fuel vehicles to replace diesel fleets in the county.
2. Any monies that are provided to a regional planning agency pursuant to paragraph 1 of this subsection and that are not spent within six months revert to the fund to be used for grants as provided in this subsection.
E. The time periods prescribed in subsection D of this section are rolling time periods and begin whenever monies are deposited in the fund. Neighborhood electric vehicles as defined in section 43-1086 are not eligible for grants pursuant to subsection D of this section. A grant provided pursuant to subsection D of this section for the purchase of an alternative fuel vehicle or the conversion of a conventionally fueled vehicle to operate on alternative fuel shall be in an amount that is equal to the amount of the tax credit prescribed in section 43-1086, subsection B or 43-1174, subsection B. The department of commerce shall promptly notify the department of revenue of persons who have received a grant pursuant to subsection D of this section and the amount of the grant. If monies are not available for grants to persons pursuant to subsection D of this section, the department of commerce shall provide the eligible person with an affidavit stating that monies are not available in the fund for grants, that the person would qualify for a grant if monies were available in the fund and that the person is eligible for a tax credit pursuant to section 43-1086 or 43-1174. The department of commerce shall not provide grants pursuant to subsection D of this section in a calendar year after the month in which the motor vehicle division reports to the department as provided in section 43-1086 that the number of new alternative fuel vehicles, excluding neighborhood electric vehicles, vehicles registered pursuant to section 28-2511 and commercial vehicles, newly registered in this state in the current calendar year exceeds one per cent of the total number of motor vehicles registered in this state in the previous calendar year. If grants are not provided in a calendar year based on a motor vehicle division report pursuant to section 43-1086, the restriction only applies to the remainder of that calendar year. If a person who applies for a grant pursuant to subsection D of this section submits a purchase order and proof of at least a ten per cent down payment on an alternative fuel vehicle, conversion or retrofit or a bill of sale for an alternative fuel vehicle, conversion or retrofit at the time of application, the department shall secure monies for a grant for that person until the person completes the transaction and the department shall not use those monies to provide grants to a regional planning agency pursuant to subsection D, paragraph 1 of this section if the transaction is completed within one year. In order to qualify for a grant pursuant to subsection D of this section or a tax credit pursuant to section 43-1086 or 43-1174, a person shall apply for a grant pursuant to subsection D of this section no later than one year after the person purchases, converts or retrofits an alternative fuel vehicle. IN ORDER FOR A VEHICLE TO QUALIFY FOR A GRANT PURSUANT TO SUBSECTION D OF THIS SECTION, THE VEHICLE AND THE VEHICLE'S OWNER SHALL COMPLY WITH THE REQUIREMENTS PRESCRIBED IN SECTION 43-1086, SUBSECTION D AND SECTION 43-1174, SUBSECTION D.
F. The department shall use monies in the fund for a grant to pay for the cost of an alternative fuel delivery system at northern Arizona university that is accessible to the general public. The amount of this grant shall not be more than three hundred thousand dollars. Alternative fuel sold from that alternative fuel delivery system shall not be marked up more than fifteen per cent.
G. The department shall use monies in the fund for grants to pay costs incurred for successful certification tests that are necessary to meet the requirements of memorandum 1-A issued by the United States environmental protection agency, that are performed in this state and the results of which are filed with the department of commerce energy office, except that fees required by the United States environmental protection agency are not eligible for grants pursuant to this subsection. Costs that are eligible for grants pursuant to this subsection include the following:
1. Procurement and operating costs for a single platform, including expenses for testing a vehicle up to its degradation mileage limit.
2. The cost of conversion equipment and installation for the single engine platform.
3. Expenses directly related to the process of obtaining certification, including:
(a) Personnel time.
(b) Additional materials.
(c) Specialized equipment rentals or leases.
(d) Operating costs and payments on purchased specialized emissions equipment during the time it is required for the certification process.
(e) The cost of installation for specialized emissions testing equipment.
(f) Ongoing maintenance, upgrading and repair costs for specialized emissions testing equipment during the time it is used for certification testing.
(g) The costs involved in obtaining technical information or access charges for information used for the certification process.
(h) Independent emissions laboratory fees required for validating certification criteria.
(i) Facility expenses that are prorated to the equivalent area of the required size of one bay large enough to house the platform and the necessary related equipment to perform the certification research and development and validation testing.
H. The department shall use monies in the fund to pay for one-half of the hydrogen program grants awarded pursuant to section 41-1515 in fiscal year 2000-2001 and fiscal year 2001-2002. Notwithstanding section 41-1515, an applicant for a grant of monies provided pursuant to this subsection shall provide funding in an amount that at least equals the grant award and if monies provided pursuant to this subsection are not used within five years the monies revert to the Arizona clean air fund.
I. No later than January 1, 2007, the department shall use monies in the fund to provide grants for at least sixteen natural gas delivery systems. These grants shall be provided to private entities to install and operate natural gas delivery systems that are accessible to the general public at the private entities' existing motor vehicle fueling stations. These grants shall be provided for at least eight natural gas delivery systems in area A as defined in section 49-541, at least three natural gas delivery systems in area B as defined in section 49-541, one natural gas delivery system in Kingman, one natural gas delivery system in Yuma, one natural gas delivery system in Casa Grande, one natural gas delivery system in Show Low and one natural gas delivery system in Payson. A recipient of a grant pursuant to this subsection shall not charge for natural gas provided from a delivery system installed and operated under the grant more than the following amounts over the recipient's cost of the natural gas:
1. Fifteen cents per gallon to cover the cost of compression, including electricity, maintenance and wear and tear.
2. An additional fifteen cents per gallon as profit.
J. If a grant is awarded pursuant to this section for an alternative fuel delivery system located at a fueling station, the price of the alternative fuel sold from the alternative fuel delivery system shall be included on the standardized sign that contains the price of other fuels sold at the fueling station. The department of commerce energy office shall design these signs, including the alternative fuel logo for these signs. Notwithstanding any other law and because the legislature finds it a matter of statewide concern, these signs shall be uniform throughout the state and local ordinances, rules or laws are preempted for design, placement, size, type and height.
K. The department may provide certification of alternative fuel vehicles and equipment converted or purchased in previous tax years if the taxpayer provides appropriate documentation to the department and if the department deems the documentation and certification acceptable.
L. Except as provided in sections 43-1086 and 43-1174, GRANTS AND tax credits for alternative fuel vehicles authorized pursuant to state law shall only be allowed if ALL OF THE FOLLOWING APPLY:
1. The vehicle meets one of the following:
1. (a) The vehicle engine is certified to meet at a minimum the United States
environmental protection agency low emission vehicle standard pursuant to 40 Code of
Federal Regulations section 88.104-94 or 88.105-94.
2. (b) THROUGH OCTOBER 19, 2001, the vehicle engine meets the
requirements of the addendum to memorandum 1-A, issued by the United States environmental
protection agency, as printed in the federal register, volume 62, number 207, October 27,
1997, pages 55635 through 55637. BEGINNING ON OCTOBER 20, 2001, THE VEHICLE ENGINE
MEETS THE REQUIREMENTS OF THE ADDENDUM TO MEMORANDUM 1-A, OPTION 1, ISSUED BY THE UNITED
STATES ENVIRONMENTAL PROTECTION AGENCY AND IN EFFECT ON JULY 1, 2000.
3. The vehicle engine is the subject of a waiver for that specific engine
application from the United States environmental protection agency's memorandum 1-A
requirements and that waiver is documented to the reasonable satisfaction of the
department.
2. THE VEHICLE IS CONVERTED TO OPERATE ON ALTERNATIVE FUEL AND THE CONVERSION COMPLIES WITH:
(a) NATIONAL FIRE PROTECTION ACT STANDARD 52 FOR COMPRESSED NATURAL GAS CONVERSIONS.
(b) NATIONAL FIRE PROTECTION ACT STANDARD 58 FOR LIQUEFIED PETROLEUM GAS CONVERSIONS.
3. THE VEHICLE IS CONVERTED TO OPERATE ON ALTERNATIVE FUEL AND EITHER:
(a) THE MODEL YEAR OF THE VEHICLE IS 1998 OR NEWER.
(b) THE MODEL YEAR OF THE VEHICLE IS MODEL YEAR 1997 OR OLDER AND THE VEHICLE IS INDIVIDUALLY TESTED UNDER THE SAME TEST PROCEDURES REQUIRED BY THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY FOR 1998 OR NEWER MODEL YEAR ENGINE PLATFORMS.
4. THE VEHICLE IS IN THE PERSON'S POSSESSION WITHIN EIGHTEEN MONTHS AFTER THE PERSON ORDERS THE VEHICLE
5. BEGINNING ON ______, 200_, IF THE VEHICLE'S CONVERSION IS AN AFTERMARKET CONVERSION, THE CONVERSION IS SUBJECT TO AN EMISSIONS AND MECHANICAL WARRANTY FOR THREE YEARS OR THIRTY-SIX THOUSAND MILES, WHICHEVER OCCURS LATER.
M. The director shall report annually to the legislature on the status of the Arizona clean air fund including a report on expenditures from the fund pursuant to this section. The report shall include a summary of alternative fuel delivery systems for which funding was provided during the preceding fiscal year. The report shall be submitted to the president of the senate and the speaker of the house of representatives no later than September 1 of each year.
N. Monies in the Arizona clean air fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. On notice from the department of commerce, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.
O. The department shall not provide grants or affidavits to any person who enters into a contract or signs a purchase order for any of the following beginning on October 20, 2000 through October 19, 2001:
1. The purchase of an alternative fuel vehicle as defined in section 43-1086.
2. The conversion of a conventionally fueled vehicle to operate on an alternative fuel.
3. The retrofitting of an alternative fuel vehicle.
4. The purchase and installation of an alternative fuel delivery system for use
on an individual's, small business' or nonprofit corporation's property in this state
pursuant to subsection C, paragraph 2 of this section.
5. Alternative fuel delivery system construction or modification pursuant to
subsection C, paragraph 1 of this section.
P. No later than November 13, 2000, each person who sells alternative fuel vehicles in this state, who converts conventionally fueled vehicles to operate on an alternative fuel in this state, who sells or installs alternative fuel delivery systems for use on an individual's, small business' or nonprofit corporation's property in this state or who constructs or modifies alternative fuel delivery systems in this state shall provide information to the department of commerce, in a form determined by the department of commerce in consultation with the department of revenue, that is necessary to administer this program and to determine the full extent to which individuals and businesses are potentially eligible for grants pursuant to this section. The information shall include all persons who entered into contracts or signed purchase orders on or after January 1, 2000 through October 19, 2000 but shall not include any cancellations that occur before November 13, 2000. The department of commerce shall send a notice to each person known to the department to be required to provide information pursuant to this subsection. The department of commerce and the department of revenue shall keep confidential any social security numbers, other assigned taxpayer identification numbers or telephone numbers provided in the information required pursuant to this section. For the purposes of this subsection, the department of commerce is exempt from the rule making requirements of chapter 6 of this title.
Q. ON OR BEFORE JANUARY 1 OF EACH YEAR, EACH CONVERTER PERFORMING CONVERSIONS IN THIS STATE OF CONVENTIONALLY FUELED VEHICLES TO OPERATE ON AN ALTERNATIVE FUEL SHALL PROVIDE TO THE DEPARTMENT CERTIFICATION TEST DATA FOR ALL PLATFORMS CONVERTED BY THE CONVERTER.
R. EACH CONVERTER PERFORMING CONVERSIONS IN THIS STATE OF CONVENTIONALLY FUELED VEHICLES TO OPERATE ON AN ALTERNATIVE FUEL SHALL SUBMIT TO THE DEPARTMENT A BOND THAT:
1. IS IN A FORM TO BE APPROVED BY THE DIRECTOR.
2. IS IN AN AMOUNT OF AT LEAST ONE MILLION DOLLARS.
3. IS EXECUTED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS STATE AS SURETY ON THE BOND WITH THE APPLICANT AS PRINCIPAL OBLIGOR ON THE BOND AND THE STATE AS OBLIGEE.
4. IS CANCELABLE ONLY ON AT LEAST SIXTY DAYS' PRIOR NOTICE TO THE DIRECTOR.
5. INURES TO THE BENEFIT OF A PERSON WHO SUFFERS LOSS BECAUSE OF AN ACTION OR OMISSION OF THE CONVERTER.
Q. S. For the purposes of this section, "alternative fuel delivery
system" means any facility that provides for the fueling of an alternative fuel vehicle.
Sec. 2. Section 43-1086, Arizona Revised Statutes, is amended to read:
43-1086. Credit for alternative fuel vehicles; definitions
A. Except as provided in subsection K of this section, for taxable years prescribed in subsection J of this section, a credit against taxes imposed by this title is allowed to each taxpayer who applies for a grant pursuant to section 41-1516 unless the vehicle is a neighborhood electric vehicle and who does any of the following:
1. Purchases or leases, for a period of at least one year, one or more new
original equipment manufactured alternative fuel vehicles for use in this state.
2. Incurs expenses during the taxable year for converting one or more conventionally fueled vehicles for use in this state to operate on an alternative fuel.
3. On or before June 30, 2000, purchases or leases, for a period of at least one year, one or more used alternative fuel vehicles for use in this state, except that a tax credit is not allowed pursuant to this section for the purchase or lease of a used neighborhood electric vehicle that is purchased or leased on or after January 1, 2000.
B. The amount of the credit is equal to the following:
1. For a new low emission vehicle twelve thousand pounds or less gross vehicle weight, THE GREATEST OF THE FOLLOWING:
(a) Thirty per cent of the cost or MANUFACTURER'S BASE RETAIL PRICE OR
THE PURCHASE PRICE OF THE VEHICLE, WHICHEVER IS LESS.
(b) Five thousand dollars, whichever is more.
2. For a used low emission vehicle twelve thousand pounds or less gross vehicle weight, fifteen per cent of the cost or two thousand five hundred dollars, whichever is more.
3. For a new ultralow or inherently low emission vehicle, THE GREATEST OF THE FOLLOWING:
(a) Forty per cent of the cost or MANUFACTURER'S BASE RETAIL PRICE OR THE
PURCHASE PRICE OF THE VEHICLE, WHICHEVER IS LESS.
(b) Seven thousand five hundred dollars, whichever is more.
4. For a used ultralow or inherently low emission vehicle, twenty per cent of the cost or three thousand seven hundred fifty dollars, whichever is more.
5. For a new zero or super ultralow emission vehicle, THE GREATEST OF THE FOLLOWING:
(a) Fifty per cent of the cost or MANUFACTURER'S BASE RETAIL PRICE OR THE
PURCHASE PRICE OF THE VEHICLE, WHICHEVER IS LESS.
(b) Ten thousand dollars, whichever is more.
6. For a used zero emission vehicle:
(a) That is purchased, twenty-five per cent of the cost or five thousand dollars, whichever is more.
(b) That is leased, twenty-five per cent of the cost or two thousand five hundred dollars, whichever is more.
7. For a new low emission vehicle over twelve thousand pounds gross vehicle weight, THE LEAST OF THE FOLLOWING:
(a) Thirty per cent of the cost or MANUFACTURER'S BASE RETAIL PRICE OR
THE PURCHASE PRICE OF THE VEHICLE, WHICHEVER IS LESS.
(b) Thirty FIFTEEN thousand dollars, whichever is more.
8. For a used low emission vehicle over twelve thousand pounds gross vehicle weight, fifteen per cent of the cost or fifteen thousand dollars, whichever is more.
9. For conversion of a vehicle over twelve thousand pounds gross vehicle weight,
the greatest LEAST of the following:
(a) Thirty per cent of the actual price of the vehicle plus the cost of
conversion.
(b) Thirty per cent of the original manufacturer's base retail price of the vehicle.
(c) Thirty FIFTEEN thousand dollars.
10. For purchase of a converted vehicle over twelve thousand pounds gross vehicle weight, fifteen per cent of the cost or fifteen thousand dollars, whichever is more.
11. For conversion of any other vehicle, the greatest LEAST of the
following:
(a) Thirty per cent of the actual purchase price of the vehicle plus the cost of
conversion.
(b) Thirty per cent of the original manufacturer's base retail price of the vehicle.
(c) Five thousand dollars.
(d) The amount of the tax credit prescribed in paragraph 3 or 4 of this subsection if the taxpayer can demonstrate that the converted vehicle qualifies as an ultralow or inherently low emission vehicle.
(e) The amount of the tax credit prescribed in paragraph 5 or paragraph 6, subdivision (a) of this subsection if the taxpayer can demonstrate that the converted vehicle qualifies as a zero or super ultralow emission vehicle.
12. For purchase of any other converted vehicle, fifteen per cent of the cost or two thousand five hundred dollars, whichever is more.
13. Notwithstanding any other paragraph of this subsection, for a new neighborhood electric vehicle that is purchased on or after July 1, 2000, fifty per cent of the cost of the vehicle or one thousand dollars, whichever is more. In order to qualify for a tax credit pursuant to this paragraph, a taxpayer shall certify on forms provided by the department that the vehicle has not been, and will not be, used on a golf course, except for use as a maintenance vehicle for a golf course. If a tax credit is taken for a vehicle pursuant to this paragraph and the vehicle is used on a golf course other than as a maintenance vehicle, the tax credit is subject to recapture by the department, and the taxpayer is subject to a civil penalty of one thousand dollars. Civil penalties collected pursuant to this paragraph shall be deposited in the Arizona clean air fund established by section 41-1516.
C. Except as provided in subsection K of this section, a tax credit is allowed pursuant to subsection B, paragraphs 1 through 8 and 13 of this section only if the vehicle is certified to meet the United States environmental protection agency emission standards for the particular type of vehicle for which the credit is claimed as prescribed by 40 Code of Federal Regulations section 88.104-94 or 88.105-94.
D. In order to qualify for a tax credit pursuant to subsection B, paragraph 9 or
10 of this section, a motor home as defined in section 28-4301 that is converted to use
liquefied petroleum gas shall have a fuel tank for onboard storage of liquefied petroleum
gas that holds at least thirty gallons.
D. IN ORDER TO QUALIFY FOR A TAX CREDIT PURSUANT TO SUBSECTION B OF THIS SECTION:
1. THE OWNER OR LESSEE OF THE VEHICLE SHALL MAINTAIN POSSESSION OF THE VEHICLE FOR AT LEAST TWENTY-FOUR MONTHS. BY RULE, THE DEPARTMENT SHALL ESTABLISH EXCEPTIONS TO THIS REQUIREMENT. IF A TAXPAYER FAILS TO COMPLY WITH THIS PARAGRAPH OR RULES ADOPTED BY THE DEPARTMENT PURSUANT TO THIS PARAGRAPH, THE DEPARTMENT SHALL RECAPTURE THE TAX CREDIT BY WITHHOLDING ANY ANNUAL INSTALLMENT PAYMENT DUE OR BY DISALLOWING ANY OFFSET PURSUANT TO SUBSECTION E OF THIS SECTION.
2. FOR A VEHICLE OVER TWELVE THOUSAND POUNDS GROSS VEHICLE WEIGHT:
(a) THE VEHICLE SHALL BE REGISTERED AS A COMMERCIAL VEHICLE.
(b) THE FINANCIAL RESPONSIBILITY REQUIREMENTS PRESCRIBED IN TITLE 28, CHAPTER 9, ARTICLE 2 SHALL BE SATISFIED FOR THE VEHICLE.
(c) THE VEHICLE SHALL DEMONSTRATE A TRUE CURB WEIGHT OF OVER TWELVE THOUSAND POUNDS.
(d) THE OWNER OR LESSEE SHALL PROVIDE A WRITTEN STATEMENT OF ASSURANCE THAT THE VEHICLE WILL BE USED FOR COMMERCIAL PURPOSES. THIS STATEMENT IS SUBJECT TO AUDIT BY THE DEPARTMENT.
3. IF THE VEHICLE IS A BI-FUEL VEHICLE, THE OWNER OR LESSEE SHALL PROVIDE EVIDENCE SATISFACTORY TO THE DEPARTMENT THAT THE VEHICLE USES THE PERCENTAGE OF ALTERNATIVE FUEL PRESCRIBED BY THE DEPARTMENT IN RULE. THE PERCENTAGE PRESCRIBED BY THE DEPARTMENT SHALL BE BASED ON FUEL TYPE AND SHALL BE AT LEAST TWENTY-FIVE PER CENT BUT NOT MORE THAN FIFTY-ONE PER CENT. THE DEPARTMENT SHALL INCREASE THE PERCENTAGE REQUIREMENT BASED ON THE NUMBER OF ALTERNATIVE FUEL FUELING STATIONS IN THIS STATE, EXCEPT THAT THE DEPARTMENT SHALL NOT INCREASE THE PERCENTAGE REQUIREMENT BY MORE THAN TEN PER CENT OF THE TOTAL AMOUNT OF ALL TYPES OF FUEL USED BY THE VEHICLE. IF A VEHICLE FAILS TO COMPLY WITH THIS PARAGRAPH OR RULES ADOPTED BY THE DEPARTMENT PURSUANT TO THIS PARAGRAPH, THE DEPARTMENT SHALL RECAPTURE THE TAX CREDIT BY WITHHOLDING ANY ANNUAL INSTALLMENT PAYMENT DUE OR BY DISALLOWING ANY OFFSET PURSUANT TO SUBSECTION E OF THIS SECTION.
4. THE VEHICLE COMPLIES WITH EMISSION INSPECTION REQUIREMENTS PRESCRIBED IN TITLE 49, CHAPTER 3, ARTICLE 5. IF A VEHICLE FAILS TO COMPLY WITH THIS PARAGRAPH, THE DEPARTMENT SHALL RECAPTURE THE TAX CREDIT BY WITHHOLDING ANY ANNUAL INSTALLMENT PAYMENT DUE OR BY DISALLOWING ANY OFFSET PURSUANT TO SUBSECTION E OF THIS SECTION.
E. If the allowable tax credit exceeds the taxes due under this title on the claimant's income, or if there are no taxes due under this title, the following apply:
1. If the vehicle is not a neighborhood electric vehicle, the taxpayer may elect either of the following:
(a) To be paid the amount of the claim not used to offset taxes under this title
in the same manner as a refund granted under section 42-1118. FOR CONTRACTS OR
PURCHASE ORDERS ENTERED INTO BEFORE OCTOBER 11, 2000, THE REFUND SHALL BE PAID IN THREE
ANNUAL INSTALLMENTS. FOR CONTRACTS OR PURCHASE ORDERS ENTERED INTO ON OR AFTER OCTOBER
11, 2000, THE REFUND SHALL BE PAID IN FIVE ANNUAL INSTALLMENTS. Refunds made pursuant
to this subdivision SHALL BE REDUCED BY THE AMOUNT OF ANY TAX LIABILITY UNDER THIS
TITLE FOR THE APPLICABLE TAXABLE YEAR AND are subject to setoff pursuant to section
42-1122.
(b) To use the amount as a credit to offset taxes under this title over ten consecutive taxable years in compliance with any statute of limitations provided in this title or title 42.
2. If the vehicle is a neighborhood electric vehicle, the amount of the credit not used to offset taxes under this title may be carried forward to the next five consecutive taxable years as a credit against subsequent years' income tax liability.
F. Except as provided in subsection K of this section, if a person purchases an alternative fuel vehicle and then leases the vehicle to another person, the lessor is not entitled to take a tax credit pursuant to this section for the purchase of the vehicle but may claim a share of the tax credit for the lease of the vehicle as provided in the lease agreement, except that the total amount claimed by the lessor and lessee shall not be more than the credit allowed pursuant to this section and a person who purchases an alternative fuel vehicle and then leases the vehicle to a governmental entity is entitled to take a tax credit pursuant to this section for the purchase of the vehicle.
G. Except as provided in subsection K of this section, notwithstanding subsection
B of this section and if the vehicle is not a neighborhood electric vehicle:
1. If a person receives a grant pursuant to section 41-1516 for the purchase of
an alternative fuel vehicle or the conversion of a conventionally fueled vehicle to
operate on alternative fuel on or before June 30, 2003, the tax credit pursuant to this
section shall only be for the incremental cost of the purchase or conversion.
2. If the person applies for a grant pursuant to section 41-1516 on or before
June 30, 2003 and submits to the department of revenue an affidavit issued by the
department of commerce stating that monies are not available in the Arizona clean air
fund for grants, that the person would qualify for a grant if monies were available in
the fund and that the person is eligible for a tax credit pursuant to this section or
section 43-1174, the person is eligible for a tax credit in the amount prescribed in this
section plus the incremental cost of the purchase or conversion.
3. G. If a person receives a grant pursuant to section 41-1516
for the purchase of an alternative fuel vehicle or for the conversion of a conventionally
fueled vehicle to operate on alternative fuel on or after July 1, 2003 through December
31, 2009, the person is not eligible for a tax credit pursuant to this section.
H. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the tax credit that would have been allowed for a joint return.
I. Co-owners of a business, including partners in a partnership and shareholders of an S corporation as defined in section 1361 of the internal revenue code, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credits allowed all such owners may not exceed the amount that would have been allowed for a sole owner of the business.
J. Except as provided in subsection K of this section, tax credits are allowed pursuant to this section through the taxable year ending on or before December 31, 2009, except that tax credits are not allowed for purchases or conversions that occur in a calendar year after the month in which the motor vehicle division reports to the department that the number of new alternative fuel vehicles, excluding neighborhood electric vehicles, vehicles registered pursuant to section 28-2511 and commercial vehicles, newly registered in this state in the current calendar year exceeds one per cent of the total number of motor vehicles registered in this state in the previous calendar year. If tax credits are not allowed in a calendar year based on a motor vehicle division report pursuant to this subsection, the restriction only applies to the remainder of that calendar year. On or before the fifteenth day of each calendar month the motor vehicle division shall submit a report to the department of revenue and the department of commerce energy office that contains the number of new alternative fuel vehicles, excluding neighborhood electric vehicles, vehicles registered pursuant to section 28-2511 and commercial vehicles, newly registered in this state in the current calendar year at the end of the previous month and whether that number exceeds one per cent of the total number of motor vehicles registered in this state in the previous calendar year. The motor vehicle division shall provide a copy of this report to each motor vehicle dealer association in this state. The motor vehicle division shall base the numbers of new alternative fuel vehicles in these reports on manufacturers' certificates of origin.
K. The credit provided by this section is not allowed for any of the following:
1. The purchase or lease of an alternative fuel vehicle that is made pursuant to a contract or purchase order entered into during the period beginning on October 20, 2000 through October 19, 2001.
2. The purchase or lease of an alternative fuel vehicle that is made during the period beginning on October 20, 2000 through October 19, 2001 if the purchase or lease is not made pursuant to a contract or purchase order entered into by the taxpayer before October 20, 2000.
3. Any expense incurred for conversion of a conventionally fueled vehicle to operate on alternative fuel that is made pursuant to a contract or purchase order entered into during the period beginning on October 20, 2000 through October 19, 2001.
4. Any expense incurred for conversion of a conventionally fueled vehicle to operate on alternative fuel during the period beginning on October 20, 2000 through October 19, 2001 if the expense is not incurred pursuant to a contract or purchase order entered into by the taxpayer before October 20, 2000.
L. For purposes of this section:
1. "Alternative fuel" has the same meaning prescribed in section 1-215.
2. "Alternative fuel vehicle":
(a) Means a self-propelled vehicle that is registered and titled in this state for operation on the highways and that is primarily propelled by an alternative fuel.
(b) Includes neighborhood electric vehicles, bi-fuel vehicles and dedicated vehicles.
(c) Does not include such vehicles as ANY OF THE FOLLOWING VEHICLES:
(i) A golf cart as defined in section 28-101 unless the golf cart qualifies as a
neighborhood electric vehicle. ,
(ii) A motorcycle, a motor driven cycle, a moped or an implement of husbandry as
defined in section 28-101. ,
(iii) A motorized wheelchair as defined in section 28-601. ,
(iv) An electric bicycle. Or
(v) A vehicle, such as a forklift, that is not designed primarily for operation on highways.
(vi) A MOTOR HOME AS DEFINED IN SECTION 28-4301.
(d) If the vehicle is powered by electricity, may include an onboard auxiliary motor that is designed and used to recharge batteries.
3. "Bi-fuel vehicle" means a vehicle that is capable of operating on both gasoline or an alternative fuel but does not include a vehicle that is capable of operating on a mixture of two or more fuel types.
4. "Dedicated vehicle" means a vehicle that is capable of operating only on a single alternative fuel.
5. "Incremental cost" means the amount by which the cost of an alternative fuel
vehicle exceeds the cost of the same model of conventionally fueled vehicle that is
similarly equipped and for a zero emission vehicle is assumed to be ten thousand dollars
or twenty-five per cent of the cost, whichever is more.
6. 5. "Neighborhood electric vehicle" means a motor vehicle that has
alternative fuel vehicle special plates or an alternative fuel vehicle sticker issued
pursuant to section 28-2416 and that meets the standards prescribed in 49 Code of Federal
Regulations section 571.500, except that, if a vehicle is designed to be operated at
speeds of twenty miles per hour or less, the vehicle is not required to have a seventeen
digit vehicle identification number.
Sec. 3. Section 43-1086.01, Arizona Revised Statutes, is amended to read:
43-1086.01. Credit for vehicle refueling apparatus and infrastructure; definition
A. Except as provided in subsection F of this section, for taxable years beginning after December 31, 1998, a credit against taxes imposed pursuant to this title is allowed to each taxpayer who purchases a vehicle refueling apparatus, including storage tanks, for installation on one or more properties located in this state for the taxpayer's use. The amount of the tax credit for each vehicle refueling apparatus is the cost of the vehicle refueling apparatus.
B. Except as provided in subsection F of this section, for taxable years beginning after December 31, 1998, a credit against taxes imposed pursuant to this title is allowed to each taxpayer who installs any infrastructure necessary for operation of a vehicle refueling apparatus purchased for installation on the taxpayer's property located in this state as provided in subsection A of this section, including gas or electric infrastructure from the closest main or transformer but not more than one hundred feet. The amount of the tax credit for installation of infrastructure is the cost of the installation of the infrastructure.
C. If the allowable tax credit exceeds the taxes due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may elect either of the following:
1. To be paid the amount of the claim not used to offset taxes under this title in the same manner as a refund granted under section 42-1118. Refunds made pursuant to this paragraph are subject to setoff pursuant to section 42-1122.
2. To use the amount as a credit to offset taxes under this title over ten consecutive taxable years in compliance with any statute of limitations provided in this title or title 42.
D. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the tax credit that would have been allowed for a joint return.
E. Co-owners of a business, including partners in a partnership and shareholders of an S corporation, as defined in section 1361 of the internal revenue code, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credits allowed all such owners may not exceed the amount that would have been allowed for a sole owner of the business.
F. The credit provided by this section is not allowed for any of the following:
1. The purchase of a vehicle refueling apparatus, including storage tanks, that is made pursuant to a contract or purchase order entered into during the period beginning on October 20, 2000 through October 19, 2001.
2. The purchase of a vehicle refueling apparatus, including storage tanks, that is made during the period beginning on October 20, 2000 through October 19, 2001 if the purchase is not made pursuant to a contract or purchase order entered into by the taxpayer before October 20, 2000.
3. Any installation of infrastucture necessary for the operation of a vehicle refueling apparatus that is made pursuant to a contract or purchase order entered into during the period beginning on October 20, 2000 through October 19, 2001.
4. Any installation of infrastucture necessary for the operation of a vehicle refueling apparatus that is made during the period beginning on October 20, 2000 through October 19, 2001 if the installation is not made pursuant to a contract or purchase order entered into by the taxpayer before October 20, 2000.
G. No later than November 13, 2000, each person who sells or installs vehicle refueling apparatuses, including storage tanks, shall provide information to the department of commerce, in a form determined by the department of commerce in consultation with the department of revenue, that is necessary to administer this program and to determine the full extent to which taxpayers are potentially eligible for tax credits pursuant to this section. The information shall include all purchases and installations described in subsection F of this section on or after January 1, 2000 through October 19, 2000 but shall not include any cancellations that occur before November 13, 2000. The department of commerce shall send a notice to each person known to the department to be required to provide information pursuant to this subsection. The department of commerce and the department of revenue shall keep confidential any social security numbers, other assigned taxpayer identification numbers or telephone numbers provided in the information required pursuant to this section. For the purposes of this subsection, the department of commerce is exempt from the rule making requirements of title 41, chapter 6.
H. For the purposes of this section, "vehicle refueling apparatus" means any of the following:
1. A maximum ten to fifteen standard cubic feet per minute natural gas compression appliance used for slow fill, on-site refueling.
2. Equipment necessary to provide an electric charge for an electric vehicle, excluding wall sockets and extension cords.
3. Tanks A TANK used to store liquefied petroleum gas AND THE
DISPENSING EQUIPMENT NECESSARY TO TRANSFER LIQUEFIED PETROLEUM GAS FROM THE STORAGE TANK
TO A VEHICLE.
Sec. 4. Section 43-1174, Arizona Revised Statutes, is amended to read:
43-1174. Credit for alternative fuel vehicles; definitions
A. Except as provided in subsection J of this section, for taxable years prescribed in subsection I of this section, a credit against taxes imposed by this title is allowed to each taxpayer who applies for a grant pursuant to section 41-1516 unless the vehicle is a neighborhood electric vehicle and who does any of the following:
1. Purchases or leases, for a period of at least one year, one or more new
original equipment manufactured alternative fuel vehicles for use in this state.
2. Incurs expenses during the taxable year for converting one or more conventionally fueled vehicles for use in this state to operate on an alternative fuel.
3. On or before June 30, 2000, purchases or leases, for a period of at least one year, one or more used alternative fuel vehicles for use in this state, except that a tax credit is not allowed pursuant to this section for the purchase or lease of a used neighborhood electric vehicle that is purchased or leased on or after January 1, 2000.
B. The amount of the credit is equal to the following:
1. For a new low emission vehicle twelve thousand pounds or less gross vehicle weight, THE GREATEST OF THE FOLLOWING:
(a) Thirty per cent of the cost or MANUFACTURER'S BASE RETAIL PRICE OR
THE PURCHASE PRICE OF THE VEHICLE, WHICHEVER IS LESS.
(b) Five thousand dollars, whichever is more.
2. For a used low emission vehicle twelve thousand pounds or less gross vehicle weight, fifteen per cent of the cost or two thousand five hundred dollars, whichever is more.
3. For a new ultralow or inherently low emission vehicle, THE GREATEST OF THE FOLLOWING:
(a) Forty per cent of the cost or MANUFACTURER'S BASE RETAIL PRICE OR THE
PURCHASE PRICE OF THE VEHICLE, WHICHEVER IS LESS.
(b) Seven thousand five hundred dollars, whichever is more.
4. For a used ultralow or inherently low emission vehicle, twenty per cent of the cost or three thousand seven hundred fifty dollars, whichever is more.
5. For a new zero or super ultralow emission vehicle, THE GREATEST OF THE FOLLOWING:
(a) Fifty per cent of the cost or MANUFACTURER'S BASE RETAIL PRICE OR THE
PURCHASE PRICE OF THE VEHICLE, WHICHEVER IS LESS.
(b) Ten thousand dollars, whichever is more.
6. For a used zero emission vehicle:
(a) That is purchased, twenty-five per cent of the cost or five thousand dollars, whichever is more.
(b) That is leased, twenty-five per cent of the cost or two thousand five hundred dollars, whichever is more.
7. For a new low emission vehicle over twelve thousand pounds gross vehicle weight, THE LEAST OF THE FOLLOWING:
(a) thirty FIFTEEN per cent of the cost or MANUFACTURER'S BASE
RETAIL PRICE OR THE PURCHASE PRICE OF THE VEHICLE, WHICHEVER IS LESS.
(b) thirty FIFTEEN thousand dollars, whichever is more.
8. For a used low emission vehicle over twelve thousand pounds gross vehicle weight, fifteen per cent of the cost or fifteen thousand dollars, whichever is more.
9. For conversion of a vehicle over twelve thousand pounds gross vehicle weight,
the greatest LEAST of the following:
(a) Thirty per cent of the actual price of the vehicle plus the cost of
conversion.
(b) Thirty per cent of the original manufacturer's base retail price of the vehicle.
(c) Thirty FIFTEEN thousand dollars.
10. For purchase of a converted vehicle over twelve thousand pounds gross vehicle weight, fifteen per cent of the cost or fifteen thousand dollars, whichever is more.
11. For conversion of any other vehicle, the greatest LEAST of the
following:
(a) Thirty per cent of the actual purchase price of the vehicle plus the cost of
conversion.
(b) Thirty per cent of the original manufacturer's base retail price of the vehicle.
(c) Five thousand dollars.
(d) The amount of the tax credit prescribed in paragraph 3 or 4 of this subsection if the taxpayer can demonstrate that the converted vehicle qualifies as an ultralow or inherently low emission vehicle.
(e) The amount of the tax credit prescribed in paragraph 5 or paragraph 6, subdivision (a) of this subsection if the taxpayer can demonstrate that the converted vehicle qualifies as a zero or super ultralow emission vehicle.
12. For purchase of any other converted vehicle, fifteen per cent of the cost or two thousand five hundred dollars, whichever is more.
13. Notwithstanding any other paragraph of this subsection, for a new neighborhood electric vehicle that is purchased on or after July 1, 2000, fifty per cent of the cost of the vehicle or one thousand dollars, whichever is more. In order to qualify for a tax credit pursuant to this paragraph, a taxpayer shall certify on forms provided by the department that the vehicle has not been, and will not be, used on a golf course, except for use as a maintenance vehicle for a golf course. If a tax credit is taken for a vehicle pursuant to this paragraph and the vehicle is used on a golf course other than as a maintenance vehicle, the tax credit is subject to recapture by the department, and the taxpayer is subject to a civil penalty of one thousand dollars. Civil penalties collected pursuant to this paragraph shall be deposited in the Arizona clean air fund established by section 41-1516.
C. Except as provided in subsection J of this section, a tax credit is allowed pursuant to subsection B, paragraphs 1 through 8 and 13 of this section only if the vehicle is certified to meet the United States environmental protection agency emission standards for the particular type of vehicle for which the credit is claimed as prescribed by 40 Code of Federal Regulations section 88.104-94 or 88.105-94.
D. In order to qualify for a tax credit pursuant to subsection B, paragraph 9 or
10 of this section, a motor home as defined in section 28-4301 that is converted to use
liquefied petroleum gas shall have a fuel tank for onboard storage of liquefied petroleum
gas that holds at least thirty gallons.
D. IN ORDER TO QUALIFY FOR A TAX CREDIT PURSUANT TO SUBSECTION B OF THIS SECTION:
1. THE OWNER OR LESSEE OF THE VEHICLE SHALL MAINTAIN POSSESSION OF THE VEHICLE FOR AT LEAST TWENTY-FOUR MONTHS. BY RULE, THE DEPARTMENT SHALL ESTABLISH EXCEPTIONS TO THIS REQUIREMENT. IF A TAXPAYER FAILS TO COMPLY WITH THIS PARAGRAPH OR RULES ADOPTED BY THE DEPARTMENT PURSUANT TO THIS PARAGRAPH, THE DEPARTMENT SHALL RECAPTURE THE TAX CREDIT BY WITHHOLDING ANY ANNUAL INSTALLMENT PAYMENT DUE OR BY DISALLOWING ANY OFFSET PURSUANT TO SUBSECTION E OF THIS SECTION.
2. FOR A VEHICLE OVER TWELVE THOUSAND POUNDS GROSS VEHICLE WEIGHT:
(a) THE VEHICLE SHALL BE REGISTERED AS A COMMERCIAL VEHICLE.
(b) THE FINANCIAL RESPONSIBILITY REQUIREMENTS PRESCRIBED IN TITLE 28, CHAPTER 9, ARTICLE 2 SHALL BE SATISFIED FOR THE VEHICLE.
(c) THE VEHICLE SHALL DEMONSTRATE A TRUE CURB WEIGHT OF OVER TWELVE THOUSAND POUNDS.
(d) THE OWNER OR LESSEE SHALL PROVIDE A WRITTEN STATEMENT OF ASSURANCE THAT THE VEHICLE WILL BE USED FOR COMMERCIAL PURPOSES. THIS STATEMENT IS SUBJECT TO AUDIT BY THE DEPARTMENT.
3. IF THE VEHICLE IS A BI-FUEL VEHICLE, THE OWNER OR LESSEE SHALL PROVIDE EVIDENCE SATISFACTORY TO THE DEPARTMENT THAT THE VEHICLE USES THE PERCENTAGE OF ALTERNATIVE FUEL PRESCRIBED BY THE DEPARTMENT IN RULE. THE PERCENTAGE PRESCRIBED BY THE DEPARTMENT SHALL BE BASED ON FUEL TYPE AND SHALL BE AT LEAST TWENTY-FIVE PER CENT BUT NOT MORE THAN FIFTY-ONE PER CENT. THE DEPARTMENT SHALL INCREASE THE PERCENTAGE REQUIREMENT BASED ON THE NUMBER OF ALTERNATIVE FUEL FUELING STATIONS IN THIS STATE, EXCEPT THAT THE DEPARTMENT SHALL NOT INCREASE THE PERCENTAGE REQUIREMENT BY MORE THAN TEN PER CENT OF THE TOTAL AMOUNT OF ALL TYPES OF FUEL USED BY THE VEHICLE. IF A VEHICLE FAILS TO COMPLY WITH THIS PARAGRAPH OR RULES ADOPTED BY THE DEPARTMENT PURSUANT TO THIS PARAGRAPH, THE DEPARTMENT SHALL RECAPTURE THE TAX CREDIT BY WITHHOLDING ANY ANNUAL INSTALLMENT PAYMENT DUE OR BY DISALLOWING ANY OFFSET PURSUANT TO SUBSECTION E OF THIS SECTION.
4. THE VEHICLE COMPLIES WITH EMISSION INSPECTION REQUIREMENTS PRESCRIBED IN TITLE 49, CHAPTER 3, ARTICLE 5. IF A VEHICLE FAILS TO COMPLY WITH THIS PARAGRAPH, THE DEPARTMENT SHALL RECAPTURE THE TAX CREDIT BY WITHHOLDING ANY ANNUAL INSTALLMENT PAYMENT DUE OR BY DISALLOWING ANY OFFSET PURSUANT TO SUBSECTION E OF THIS SECTION.
E. If the allowable tax credit exceeds the taxes due under this title on the claimant's income, or if there are no taxes due under this title, the following apply:
1. If the vehicle is not a neighborhood electric vehicle, the taxpayer may elect either of the following:
(a) To be paid the amount of the claim not used to offset taxes under this title
in the same manner as a refund granted under section 42-1118. FOR CONTRACTS OR
PURCHASE ORDERS ENTERED INTO BEFORE OCTOBER 11, 2000, THE REFUND SHALL BE PAID IN THREE
ANNUAL INSTALLMENTS. FOR CONTRACTS OR PURCHASE ORDERS ENTERED INTO ON OR AFTER OCTOBER
11, 2000, THE REFUND SHALL BE PAID IN FIVE ANNUAL INSTALLMENTS. Refunds made pursuant
to this subdivision SHALL BE REDUCED BY THE AMOUNT OF ANY TAX LIABILITY UNDER THIS
TITLE FOR THE APPLICABLE TAXABLE YEAR AND are subject to setoff pursuant to section
42-1122.
(b) To use the amount as a credit to offset taxes under this title over ten consecutive taxable years in compliance with any statute of limitations provided in this title or title 42.
2. If the vehicle is a neighborhood electric vehicle, the amount of the credit not used to offset taxes under this title may be carried forward to the next five consecutive taxable years as a credit against subsequent years' income tax liability.
F. Except as provided in subsection J of this section, if a person purchases an alternative fuel vehicle and then leases the vehicle to another person, the lessor is not entitled to take a tax credit pursuant to this section for the purchase of the vehicle but may claim a share of the tax credit for the lease of the vehicle as provided in the lease agreement, except that the total amount claimed by the lessor and lessee shall not be more than the credit allowed pursuant to this section and a person who purchases an alternative fuel vehicle and then leases the vehicle to a governmental entity is entitled to take a tax credit pursuant to this section for the purchase of the vehicle.
G. Except as provided in subsection J of this section, notwithstanding subsection
B of this section and if the vehicle is not a neighborhood electric vehicle:
1. If a person receives a grant pursuant to section 41-1516 for the purchase of
an alternative fuel vehicle or the conversion of a conventionally fueled vehicle to
operate on alternative fuel on or before June 30, 2003, the tax credit pursuant to this
section shall only be for the incremental cost of the purchase or conversion.
2. If the person applies for a grant pursuant to section 41-1516 on or before
June 30, 2003 and submits to the department of revenue an affidavit issued by the
department of commerce stating that monies are not available in the Arizona clean air
fund for grants, that the person would qualify for a grant if monies were available in
the fund and that the person is eligible for a tax credit pursuant to this section or
section 43-1086, the person is eligible for a tax credit in the amount prescribed in this
section plus the incremental cost of the purchase or conversion.
3. G. If a person receives a grant pursuant to section 41-1516 for the
purchase of an alternative fuel vehicle or for the conversion of a conventionally fueled
vehicle to operate on alternative fuel on or after July 1, 2003 through December 31,
2009, the person is not eligible for a tax credit pursuant to this section.
H. Co-owners of a business, including corporate partners in a partnership, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credits allowed all such owners may not exceed the amount that would have been allowed for a sole owner of the business.
I. Except as provided in subsection J of this section, tax credits are allowed pursuant to this section through the taxable year ending on or before December 31, 2009, except that tax credits are not allowed for purchases or conversions that occur in a calendar year after the month in which the motor vehicle division reports to the department as provided in section 43-1086 that the number of new alternative fuel vehicles, excluding neighborhood electric vehicles, vehicles registered pursuant to section 28-2511 and commercial vehicles, newly registered in this state in the current calendar year exceeds one per cent of the total number of motor vehicles registered in this state in the previous calendar year. If tax credits are not allowed in a calendar year based on a motor vehicle division report pursuant to section 43-1086, the restriction only applies to the remainder of that calendar year.
J. The credit provided by this section is not allowed for any of the following:
1. The purchase or lease of an alternative fuel vehicle that is made pursuant to a contract or purchase order entered into during the period beginning on October 20, 2000 through October 19, 2001.
2. The purchase or lease of an alternative fuel vehicle that is made during the period beginning on October 20, 2000 through October 19, 2001, if the purchase or lease is not made pursuant to a contract or purchase order entered into by the taxpayer before October 20, 2000.
3. Any expense incurred for conversion of a conventionally fueled vehicle to operate on alternative fuel that is made pursuant to a contract or purchase order entered into during the period beginning on October 20, 2000 through October 19, 2001.
4. Any expense incurred for conversion of a conventionally fueled vehicle to operate on alternative fuel during the period beginning on October 20, 2000 through October 19, 2001, if the expense is not incurred pursuant to a contract or purchase order entered into by the taxpayer before October 20, 2000.
K. For purposes of this section:
1. "Alternative fuel" has the same meaning prescribed in section 1-215.
2. "Alternative fuel vehicle", "incremental cost" and "neighborhood electric
vehicle" have the same meaning prescribed in section 43-1086.
Sec. 5. Section 43-1174.01, Arizona Revised Statutes, is amended to read:
43-1174.01. Credit for vehicle refueling apparatus and infrastructure; definition
A. Except as provided in subsection E of this section, for taxable years beginning after December 31, 1998, a credit against taxes imposed pursuant to this title is allowed to each taxpayer who purchases a vehicle refueling apparatus, including storage tanks, for installation on one or more properties located in this state for the taxpayer's use. The amount of the tax credit for each vehicle refueling apparatus is the cost of the vehicle refueling apparatus.
B. Except as provided in subsection E of this section, for taxable years beginning after December 31, 1998, a credit against taxes imposed pursuant to this title is allowed to each taxpayer who installs any infrastructure necessary for operation of a vehicle refueling apparatus purchased for installation on the taxpayer's property located in this state as provided in subsection A of this section, including gas or electric infrastructure from the closest main or transformer but not more than one hundred feet. The amount of the tax credit for installation of infrastructure is the cost of the installation of the infrastructure.
C. If the allowable tax credit exceeds the taxes due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may elect either of the following:
1. To be paid the amount of the claim not used to offset taxes under this title in the same manner as a refund granted under section 42-1118. Refunds made pursuant to this paragraph are subject to setoff pursuant to section 42-1122.
2. To use the amount as a credit to offset taxes under this title over ten consecutive taxable years in compliance with any statute of limitations provided in this title or title 42.
D. Co-owners of a business, including corporate partners in a partnership, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credits allowed all such owners may not exceed the amount that would have been allowed for a sole owner of the business.
E. The credit provided by this section is not allowed for any of the following:
1. The purchase of a vehicle refueling apparatus, including storage tanks, that is made pursuant to a contract or purchase order entered into during the period beginning on October 20, 2000 through October 19, 2001.
2. The purchase of a vehicle refueling apparatus, including storage tanks, that is made during the period beginning on October 20, 2000 through October 19, 2001 if the purchase is not made pursuant to a contract or purchase order entered into by the taxpayer before October 20, 2000.
3. Any installation of infrastucture necessary for the operation of a vehicle refueling apparatus that is made pursuant to a contract or purchase order entered into during the period beginning on October 20, 2000 through October 19, 2001.
4. Any installation of infrastucture necessary for the operation of a vehicle refueling apparatus that is made during the period beginning on October 20, 2000 through October 19, 2001 if the installation is not made pursuant to a contract or purchase order entered into by the taxpayer before October 20, 2000.
F. No later than November 13, 2000, each person who sells or installs vehicle refueling apparatuses, including storage tanks, shall provide information to the department of commerce, in a form determined by the department of commerce in consultation with the department of revenue, that is necessary to administer this program and to determine the full extent to which taxpayers are potentially eligible for tax credits pursuant to this section. The information shall include all purchases and installations described in subsection E of this section on or after January 1, 2000 through October 19, 2000 but shall not include any cancellations that occur before November 13, 2000. The department of commerce shall send a notice to each person known to the department to be required to provide information pursuant to this subsection. The department of commerce and the department of revenue shall keep confidential any social security numbers, other assigned taxpayer identification numbers or telephone numbers provided in the information required pursuant to this section. For the purposes of this subsection, the department of commerce is exempt from the rule making requirements of title 41, chapter 6.
G. For the purposes of this section, "vehicle refueling apparatus" means any of the following:
1. A maximum ten to fifteen standard cubic feet per minute natural gas compression appliance used for slow fill, on-site refueling.
2. Equipment necessary to provide an electric charge for an electric vehicle, excluding wall sockets and extension cords.
3. Tanks A TANK used to store liquefied petroleum gas AND THE
DISPENSING EQUIPMENT NECESSARY TO TRANSFER LIQUEFIED PETROLEUM GAS FROM THE STORAGE TANK
TO A VEHICLE.
Sec. 6. Section 49-542, Arizona Revised Statutes, is amended to read:
49-542. Emissions inspection program; powers and duties of director; administration; periodic inspection; minimum standards and rules; exception
A. The director shall administer a comprehensive annual or biennial emissions inspection program which shall require the inspection of vehicles in this state pursuant to this article and applicable administrative rules. Such inspection is required in area A and area B, for those vehicles owned by a person who is subject to section 15-1444 or 15-1627 and for those vehicles registered outside of area A or area B but used to commute to the driver's principal place of employment located within area A or area B. Inspection in other counties of the state shall commence upon application by a county board of supervisors for participation in such inspection program, subject to approval by the director. In all counties with a population of three hundred fifty thousand or fewer persons according to the most recent United States decennial census, except for the portion of counties that contain any portion of area A, the director shall as conditions dictate provide for testing to determine the effect of vehicle related pollution on ambient air quality in all communities with a metropolitan area population of twenty thousand persons or more according to the most recent United States decennial census. If such testing detects the violation of state ambient air quality standards by vehicle related pollution, the director shall forward a full report of such violation to the president of the senate, the speaker of the house of representatives and the governor.
B. The state's annual or biennial emissions inspection program shall provide for vehicle inspections at official emissions inspection stations or at fleet emissions inspection stations. Each inspection station in area A shall employ at least one mechanic who is available during the station's hours of operation to provide technical advice and assistance for persons who fail the emissions test. The director may enter into agreements with the department of transportation or with county assessors for the use of official emissions inspection stations for the purpose of conducting vehicle registrations. An official or fleet emissions inspection station permit shall not be sold, assigned, transferred, conveyed or removed to another location except on such terms and conditions as the director may prescribe.
C. Vehicles required to be inspected and registered in this state, except those provided for in section 49-546, shall be inspected, for the purpose of complying with the registration or reregistration requirement pursuant to subsection D of this section, in accordance with the provisions of this article no more than ninety days prior to each reregistration expiration date. A vehicle may be submitted voluntarily for inspection more than ninety days before the reregistration expiration date on payment of the prescribed inspection fee. Such voluntary inspection shall not be considered as compliance with the registration or reregistration requirement pursuant to subsection D of this section.
D. A vehicle shall not be registered or reregistered until such vehicle has passed the emissions inspection and the tampering inspection prescribed in subsection G of this section or has been issued a certificate of waiver. A certificate of waiver shall only be issued one time to a vehicle after January 1, 1997. If any vehicle to be registered or reregistered is being sold by a dealer licensed to sell motor vehicles pursuant to title 28, the cost of any inspection and any repairs necessary to pass the inspection shall be borne by the dealer. A dealer who is licensed to sell motor vehicles pursuant to title 28 and whose place of business is located in area A or area B shall not deliver any vehicle to the retail purchaser until the vehicle passes any inspection required by this article or the vehicle is exempt under subsection J of this section.
E. On the registration or reregistration of a vehicle which has complied with the minimum emissions standards pursuant to this section or is otherwise exempt under this section, the registering officer shall issue an air quality compliance sticker to the registered owner which shall be placed on the vehicle as prescribed by rule adopted by the department of transportation or issue a modified year validating tab as prescribed by rule adopted by the department of transportation. Those persons who reside outside of area A or area B but who elect to test their vehicle or are required to test their vehicle pursuant to this section and who comply with the minimum emissions standards pursuant to this section or are otherwise exempt under this section shall remit a compliance form, as prescribed by the department of transportation, and proof of compliance issued at an official emissions inspection station to the department of transportation along with the appropriate fees. The department of transportation shall then issue the person an air quality compliance sticker which shall be placed on the vehicle as prescribed by rule adopted by the department of transportation. The registering officer or the department of transportation shall collect an air quality compliance fee of twenty-five cents. The registering officer or the department of transportation shall deposit, pursuant to sections 35-146 and 35-147, the air quality compliance fee in the state highway fund established by section 28-6991. The department of transportation shall deposit, pursuant to sections 35-146 and 35-147, any emissions inspection fee in the emissions inspection fund. The provisions of this subsection do not apply to those vehicles registered pursuant to title 28, chapter 7, article 7 or 8, the sale of vehicles between motor vehicle dealers or vehicles leased to a person residing outside of area A or area B by a leasing company whose place of business is in area A or area B.
F. The director shall adopt minimum emissions standards pursuant to section 49-447 with which the various classes of vehicles shall be required to comply as follows:
1. For the purpose of determining compliance with minimum emissions standards in area B:
(a) A motor vehicle manufactured in or before the 1980 model year, other than a diesel powered vehicle, shall be required to take and pass the curb idle test condition. A diesel powered vehicle is subject to only a loaded test condition. The conditioning mode shall, at the option of the vehicle owner or owner's agent, be administered only after the vehicle has failed the curb idle test condition. Upon completion of such conditioning mode, a vehicle that has failed the curb idle test condition may be retested in the curb idle test condition. If the vehicle passes such retest, it shall be deemed in compliance with minimum emissions standards unless the vehicle fails the tampering inspection pursuant to subsection G of this section.
(b) A motor vehicle manufactured in or after the 1981 model year, other than a diesel powered vehicle, shall be required to take and pass the curb idle test condition and the loaded test condition.
(c) An on board diagnostic check as may be required pursuant to title II of the clean air act may be conducted for advisory purposes.
2. For purposes of determining compliance with minimum emissions standards and functional tests in area A:
(a) Motor vehicles manufactured in or after model year 1981 with a gross vehicle weight rating of eighty-five hundred pounds or less, other than diesel powered vehicles, shall be required to take and pass a transient loaded emissions test or an on board diagnostic check as may be required pursuant to title II of the clean air act.
(b) Motor vehicles other than those prescribed by subdivision (a) of this paragraph and other than diesel powered vehicles shall be required to take and pass a steady state loaded test and a curb idle emissions test.
(c) Notwithstanding the requirement of subsection C of this section that the first emissions inspection after the purchase of a new vehicle be for the second registration year for that vehicle, a diesel powered motor vehicle applying for registration or reregistration in area A more than thirty-three months after the date of initial registration shall be required to take and pass an annual emissions test conducted at an official emissions inspection station or a fleet emissions inspection station as follows:
(i) A loaded, transient or any other form of test as provided for in rules adopted by the director for vehicles with a gross vehicle weight rating of eight thousand five hundred pounds or less.
(ii) A test that conforms with the society for automotive engineers standard J1667 for vehicles with a gross vehicle weight rating of more than eight thousand five hundred pounds.
(d) Motor vehicles by specific class or model year shall be required to take and pass any of the following tests:
(i) An evaporative system purge test.
(ii) An evaporative system integrity test.
(e) An on board diagnostic check as may be required pursuant to title II of the clean air act may be conducted for advisory purposes.
3. A motorcycle or constant four wheel drive vehicle shall be required to take and pass a curb idle emissions test.
4. Fleet operators in area B which have been issued a permit under section 49-546 are required to test their vehicles as follows:
(a) A motor vehicle manufactured in or before the 1980 model year shall take and pass only the curb idle test condition, except that a diesel powered vehicle is subject to only a loaded test condition.
(b) A motor vehicle manufactured in or after the 1981 model year shall take and pass the curb idle test condition and a twenty-five hundred revolutions per minute unloaded test condition.
5. Vehicles owned or operated by the United States, this state or a political subdivision of this state shall comply with this subsection without regard to whether those vehicles are required to be registered in this state, except that alternative fuel vehicles of a school district that is located in area A shall be required to take and pass the curb idle test condition and the loaded test condition.
6. Fleet operators in area A shall comply with this section, except that used vehicles sold by a motor vehicle dealer who is a fleet operator and who has been issued a permit pursuant to section 49-546 for purposes of determining compliance with minimum emission standards in area A shall test their vehicles as follows:
(a) A motor vehicle manufactured in or before the 1980 model year shall take and pass the curb idle test condition, except that a diesel powered vehicle is subject to only a loaded test condition.
(b) A motor vehicle manufactured in or after the 1981 model year shall take and pass the curb idle test condition and a two thousand five hundred revolutions per minute unloaded test condition.
7. Beginning on January 1, 2004, a diesel powered motor vehicle with a gross vehicle weight of more than twenty-six thousand pounds and for which gross weight fees are paid pursuant to title 28, chapter 15, article 2 in area A shall not be allowed to operate in area A unless it was manufactured in or after the 1988 model year or is powered by an engine that is certified to meet or surpass emissions standards contained in 40 Code of Federal Regulations section 86.088-11. This paragraph does not apply to vehicles that are registered pursuant to title 28, chapter 7, article 7 or 8.
G. In addition to an emissions inspection, a vehicle is subject to a tampering inspection on at least a biennial basis if the vehicle was manufactured after the 1974 model year and the vehicle is not subject to a transient loaded emissions test. The director shall adopt vehicle configuration guidelines for the tampering inspection which shall be based on the original configuration of the vehicle when manufactured. The tampering inspection shall consist of the following:
1. A visual check to determine the presence of properly installed catalytic converters.
2. An examination to determine the presence of an operational air pump.
3. In area A, if the vehicle was manufactured after the 1974 model year and is not subject to a transient loaded emissions test, a visual inspection for the presence or malfunction of the positive crankcase ventilation system and the evaporative control system.
H. Vehicles required to be inspected shall undergo a functional test of the gas cap to determine if the cap holds pressure within limits prescribed by the director, except for any vehicle that is subject to an evaporative system integrity test.
I. Motor vehicles failing the initial or subsequent test are not subject to a penalty fee for late registration renewal if the original testing was accomplished before the expiration date and if the registration renewal is received by the motor vehicle division or the county assessor within thirty days of the original test.
J. The director may adopt rules for purposes of implementation, administration, regulation and enforcement of the provisions of this article including:
1. The submission of records relating to the emissions inspection of vehicles inspected by another jurisdiction in accordance with another inspection law and the acceptance of such inspection for compliance with the provisions of this article.
2. The exemption from inspection of:
(a) A motor vehicle manufactured in or before the 1966 model year.
(b) New vehicles originally registered at the time of initial retail sale and titling in this state pursuant to section 28-2153 or 28-2154.
(c) Vehicles registered pursuant to title 28, chapter 7, article 7 or 8.
(d) During each calendar year vehicles of that model year and vehicles from the prior four model years.
(e) Vehicles which will not be available within the state during the ninety days prior to registration.
(f) Golf carts.
(g) Electrically-powered vehicles.
(h) Vehicles with an engine displacement of less than ninety cubic centimeters.
(i) The sale of vehicles between motor vehicle dealers.
(j) Vehicles leased to a person residing outside of area A or area B by a leasing company whose place of business is in area A or area B.
(k) Motor vehicles that have a gross vehicle weight of twelve thousand pounds or
less, that are powered by an alternative fuel and that qualify for the vehicle license
tax rate prescribed in section 28-5805.
3. Compiling and maintaining records of emissions test results after servicing.
4. A procedure which shall allow the vehicle service and repair industry to compare the calibration accuracy of its emissions testing equipment with the department's calibration standards.
5. Training requirements for automotive repair personnel using emissions measuring equipment whose calibration accuracy has been compared with the department's calibration standards.
6. Any other rule which may be required to accomplish the provisions of this article.
K. The director shall, after consultation with automobile manufacturers and the vehicle service and repair industry, establish by rule a definition of "low emissions tune-up" for motor vehicles subject to inspection under this article. The definition shall specify repair procedures which, when implemented, will reduce vehicle emissions.
L. The director shall adopt rules which specify that the estimated retail cost of all recommended maintenance and repairs shall not exceed the amounts prescribed in this subsection, except that if a vehicle fails a tampering inspection there is no limit on the cost of recommended maintenance and repairs. The director shall issue a certificate of waiver for a vehicle which has failed reinspection, if the director has determined that all recommended maintenance and repairs have been performed. If, after reinspection, the director has determined that the vehicle is in compliance with minimum emissions standards or that all recommended maintenance and repairs for compliance with minimum emissions standards have been performed, but that tampering discovered at a tampering inspection has not been repaired, the director may issue a certificate of waiver if the owner of the vehicle provides to the director a written statement from an automobile parts or repair business that an emissions control device which is necessary to repair the tampering is not available and cannot be obtained from any usual source of supply before the vehicle's current registration expires. Rules adopted by the director for the purpose of establishing the estimated retail cost of all recommended maintenance and repairs pursuant to this subsection shall specify that:
1. In area A the cost shall not exceed:
(a) Five hundred dollars for a diesel powered vehicle with a gross weight in excess of twenty-six thousand pounds.
(b) Five hundred dollars for a diesel powered vehicle with tandem axles.
(c) For a vehicle other than a diesel powered vehicle with a gross weight in excess of twenty-six thousand pounds and other than a diesel powered vehicle with tandem axles:
(i) Two hundred dollars for such a vehicle manufactured in or before the 1974 model year.
(ii) Three hundred dollars for such a vehicle manufactured in the 1975 through 1979 model years.
(iii) Four hundred fifty dollars for such a vehicle manufactured in or after the 1980 model year.
2. In area B the cost shall not exceed:
(a) Three hundred dollars for a diesel powered vehicle with a gross weight in excess of twenty-six thousand pounds.
(b) Three hundred dollars for a diesel powered vehicle with tandem axles.
3. For a vehicle other than a diesel powered vehicle with a gross weight in excess of twenty-six thousand pounds and other than a diesel powered vehicle with tandem axles:
(a) Fifty dollars for such a vehicle manufactured in or before the 1974 model year.
(b) Two hundred dollars for such a vehicle manufactured in the 1975 through 1979 model years.
(c) Three hundred dollars for such a vehicle manufactured in or after the 1980 model year.
M. Each person whose vehicle has failed an emissions inspection shall be provided a list of those general recommended tune-up procedures for vehicles which are designed to reduce vehicle emissions levels. The list shall include the following notice: "This test is the result of federal law. You may wish to contact your representative in the United States Congress."
N. Notwithstanding any other provisions of this article, the director may adopt rules allowing exemptions from the requirement that all vehicles must meet the minimum standards for registration or reregistration.
O. The director of environmental quality shall establish, in cooperation with the assistant director for the motor vehicle division of the department of transportation:
1. An adequate method for identifying bona fide residents residing outside of area A or area B to ensure that such residents are exempt from compliance with the inspection program established by this article and rules adopted under this article.
2. A written notice that shall accompany the vehicle registration application forms that are sent to vehicle owners pursuant to section 28-2151 and that shall accompany or be included as part of the vehicle emissions test results that are provided to vehicle owners at the time of the vehicle emissions test. This written notice shall describe at least the following:
(a) The restriction of the waiver program to one time per vehicle and a brief description of the implications of this limit.
(b) The availability and a brief description of the vehicle repair and retrofit program established pursuant to section 49-474.03.
(c) Notice that many vehicles carry extended warranties for vehicle emissions systems, and those warranties are described in the vehicle's owner's manual or other literature.
(d) A description of the catalytic converter replacement program established pursuant to section 49-474.03.
P. Notwithstanding any other law, if area A or area B is reclassified as an attainment area, emissions testing conducted pursuant to this article shall continue for vehicles registered inside that reclassified area, vehicles owned by a person who is subject to section 15-1444 or 15-1627 and vehicles registered outside of that reclassified area but used to commute to the driver's principal place of employment located within that reclassified area.
Q. A fleet operator who is issued a permit pursuant to section 49-546 may electronically transmit emissions inspection data to the department of transportation pursuant to rules adopted by the director of the department of transportation in consultation with the director of environmental quality.
R. The director shall prohibit a certificate of waiver pursuant to subsection L of this section for any vehicle which has failed inspection in area A due to the catalytic converter system.
S. The director shall establish provisions for rapid testing of certain vehicles and to allow fleet operators, singly or in combination, to contract directly for vehicle emissions testing.
T. Each vehicle emissions control station in area A shall have a sign posted to be visible to persons who are having their vehicles tested. This sign shall state that enhanced testing procedures are a direct result of federal law.
U. The initial adoption of rules pursuant to this section shall be deemed emergency rules pursuant to section 41-1026.
V. The director of environmental quality and the director of the department of transportation shall implement a system to exchange information relating to the waiver program, including information relating to vehicle emissions test results and vehicle registration information.
W. Any person who sells a vehicle that has been issued a certificate of waiver pursuant to this section after January 1, 1997 and who knows that a certificate of waiver has been issued after January 1, 1997 for that vehicle shall disclose to the buyer before completion of the sale that a certificate of waiver has been issued for that vehicle.
X. Vehicles that fail the emissions test at emission levels higher than twice the standard established for that vehicle class by the department pursuant to section 49-447 are not eligible for a certificate of waiver pursuant to this section unless the vehicle is repaired sufficiently to achieve an emissions level below twice the standard for that class of vehicle.
Sec. 7. Title 49, chapter 3, article 5, Arizona Revised Statutes, is amended by adding section 49-542.05, to read:
49-542.05. Alternative fuel vehicles
A. IN ADDITION TO ANY OTHER REQUIREMENTS OF THIS ARTICLE, IF A VEHICLE IS AN ALTERNATIVE FUEL VEHICLE AS DEFINED IN SECTION 43-1086:
1. BEGINNING ON _____, 200_, EACH BI-FUEL VEHICLE AS DEFINED IN SECTION 43- 1086 SHALL BE TESTED FOR EMISSIONS WHILE OPERATING ON GASOLINE AND WHILE OPERATING ON THE ALTERNATIVE FUEL.
2. AT THE TIME OF EMISSIONS INSPECTION, THE TOTAL MILEAGE OF THE VEHICLE OVER THE PRECEDING TWENTY-FOUR MONTHS SHALL BE REPORTED.
B. THE DEPARTMENT OF ENVIRONMENTAL QUALITY SHALL REPORT THE FOLLOWING TO THE DEPARTMENT OF REVENUE AND THE DEPARTMENT OF COMMERCE ON A MONTHLY BASIS:
1. THE RESULTS OF EMISSIONS INSPECTIONS OF ALL ALTERNATIVE FUEL VEHICLES PURSUANT TO THIS ARTICLE.
2. THE INFORMATION REPORTED PURSUANT TO SUBSECTION A, PARAGRAPH 2 OF THIS SECTION.
Sec. 8. Retroactivity
A. Section 41-1516, Arizona Revised Statutes, as amended by this act, applies retroactively to from and after December 31, 1999.
B. Sections 43-1086, 43-1086.01, 43-1174 and 43-1174.01, Arizona Revised Statutes, as amended by this act, apply retroactively to taxable years beginning from and after December 31, 1999.
Sec. 9. Clean air act implementation study committee
A. A clean air act implementation study committee is established consisting of the following:
1. Three members who are appointed by the president of the senate.
2. Three members who are appointed by the speaker of the house of representatives.
3. Three members who are appointed by the governor. The governor shall designate one of these members to serve as chairperson of the study committee.
B. The study committee shall:
1. Assist in establishing guidelines that can render the clean air act program most effective while striving to maintain a level of fairness for consumers who choose to participate.
2. Investigate establishing tighter guidelines to improve the effectiveness of the program while fostering the clean air benefits available from alternative fuels.
3. Make recommendations for program objectives by:
(a) Identifying achievable goals.
(b) Reviewing federal requirements and the possible economic impact of removing the alternative fuel vehicle program.
(c) Reviewing other state and federal clean air programs.
4. Make recommendations for fiscally sound incentives for the alternative fuel vehicle program, including vehicle incentives, refueling incentives, fuel use incentives and research and development incentives.
5. Make recommendations for program compliance and controls, including testing criteria for alternative fuel vehicles, fuel usage requirements and measurement standards.
6. Make recommendations for recapture provisions and testing criteria for vehicles in the program, including emission testing procedures, recapture provisions if emissions standards are not met and elimination of third party testing for alternative fuel vehicles.
7. Make safety recommendations.
8. Make training recommendations.
9. Recommend appropriate incentives.
10. Review environmental benefits.
C. Submit a final report of its findings and recommendations to the speaker of the house of representatives, the president of the senate and the governor on or before May 31, 2001. The study committee shall provide a copy of its final report to the secretary of state and the director of the Arizona state library, archives and public records.
Sec. 10. Delayed repeal
Section 9 of this act, relating to the clean air act implementation study committee, is repealed from and after December 31, 2001.
Sec. 11. Requirements for enactment; two-thirds vote
Pursuant to article IX, section 22, Constitution of Arizona, this act is effective only on the affirmative vote of at least two-thirds of the members of each house of the legislature and is effective immediately on the signature of the governor or, if the governor vetoes this act, on the subsequent affirmative vote of at least three-fourths of the members of each house of the legislature.